Panin Bank's (PNBN) Business Growth Sluggish, Loans and Deposits Erode
PT Bank Pan Indonesia Tbk (PNBN), also known as PaninBank, recorded a net profit of Rp 1.44 trillion in the first half of 2026. This represented minimal growth of just 1.0% year on year compared with Rp 1.42 trillion in the same period of 2025.
In a press statement, PaninBank President Director Herwidayatmo said the increase in net profit was mainly supported by an improvement in Net Interest Income, which rose 6.6% to Rp 4.68 trillion compared with Rp 4.39 trillion in the same period of 2025.
The decline in interest rates since mid-2025 gave the bank an opportunity to improve its Net Interest Margin, which rose to 4.55% from 4.23% in June 2025.
On the intermediation front, total lending by the bank owned by Mu’min Ali Gunawan reached Rp 139.64 trillion, a correction of 3.75% compared with the end-2025 position of Rp 145.08 trillion. Loan growth slowed, mainly hampered by the bank’s policy of applying prudential principles to maintain the quality of its credit portfolio.
“During the first half of 2026, PaninBank became increasingly selective in choosing sectors, debtors and financing purposes, amid a global economy full of uncertainty,” Herwidayatmo said in the press statement.
Even so, credit quality actually deteriorated, with the gross non-performing loan (NPL) ratio rising to 3.22% from 2.81% a year earlier. The net NPL also rose to 1.26% from 0.71% a year earlier.
Funding likewise declined. PaninBank’s third-party funds fell 7.87% to Rp 144.57 trillion.
“The growth of third-party funds was controlled in anticipation of still weak credit growth,” said Herwidayatmo.
The CASA ratio was successfully improved from 40% at the end of December 2025 to 42% at the end of June 2026.
At the same time, PaninBank successfully raised long-term funding through the issuance of Bank Panin Continuous Bonds IV Phase IV 2026, with a total issuance of Rp 2.71 trillion; Bank Panin Continuous Bonds V Phase I 2026, with an issuance of Rp 500 billion; and Bank Panin Continuous Subordinated Bonds V Phase I 2026, amounting to Rp 50 billion.
In addition to the decline in intermediation and funding, PaninBank strengthened its capital. Total capital has now reached Rp 53.33 trillion, with the Capital Adequacy Ratio also rising to 35.93%.